Angela invests $2,550 at 3% interest compounded annually. What will be the balance in the account after 1.5 years?

Question

A. $2,626.50
B. $3,635.69
C. $2,665.61
D. $4,792.50

Answer 1

Using the formula for compound interest, we have:

Balance = Principal x (1 + rate)^time

Plugging in the given values, we get:

Balance = $2,550 x (1 + 0.03)^1.5
Balance = $2,550 x 1.04595
Balance = $2,665.61

Therefore, the answer is C. $2,665.61.